Exhibit 25-1 
Refer to Exhibit 25-1. Which of the following statements is false ?
A) If marginal-cost pricing is imposed on the natural monopoly firm, the firm takes a loss.
B) If average-cost pricing is imposed on the natural monopoly firm, the firm earns zero economic profits.
C) If the natural monopoly firm produces Q3 units of output and charges P3 per unit, the firm earns zero economic profits.
D) If the natural monopoly firm produces Q2 units of output and charges P2 per unit, the firm earns zero economic profits.
Correct Answer:
Verified
Q43: If average total costs for a natural
Q52: What is the maximum value of the
Q55: Natural monopoly exists when
A)one firm can supply
Q56: Which of the following does not lend
Q57: Exhibit 25-1 Q57: Which of the following is not a![]()
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